Getting Down To Basics with Merchants

The Features of a Credit Card Reader and Their Uses

To use a credit card, a credit card reader has to be used and since you are one of those who owns a credit card, it is worthwhile to know how this equipment functions. Whenever we use our credit cards in buying and paying the products, a credit card reader is the machine that completes the process in the transaction. Aside from reading your credit card to complete a sale, a credit card reader also reads employee cards, customer cards and gift certificates.

It is undeniable that the use of credit cards is already integrated in our business world, and the credit card readers become a part of this process by taking part in reading and processing the cards to finish a transaction. The role of the credit card reader is to get the information from the credit card, pass the information, and make verification if the particular credit card has sufficient funds to support the purchase being done.

Understanding how the credit card reader works would start in learning its features, and that is what we will try to explain here.

When you use your credit card, you will notice at the back that it has a shiny black stripe. Upon swiping your credit card, the information contained in the shiny black stripe is read by the credit card reader and it will validate your credit card if it contains enough funds and allow transactions.

The purpose on the swiping of the credit card is to send the data embedded in the shiny black stripe to the central tracking and billing system, then it process the information and send to the credit card company.

When the credit card company gets the information and has verified, it will then confirms to the issuing bank that the card is legitimate, and notify if the card has reached its spending limit or purchase is still acceptable.

A basic credit card reader is composed of a magnetic stripe reader, a keypad used to enter information, and a tiny display. The whole system is connected in such a way that the reader is connected to a keyboard wedge serial port or USB, and can have a printer that is built in, or considered as a separate unit function.

The display part of the reader comes in various types, with the bigger display as more favourable since you can view more information. Having a backlit feature in a credit card reader is favourable also especially when the reader is used under low light surroundings.

There are various sizes and keys in a keypad of a credit card reader, with more advantage if the bigger keypads are used. The more keys available, the more preference given to the commonly used utilities to use their own key.